Triple Candlestick Patterns in Forex [EXPLAINED]

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Triple Candlestick patterns means triple the effort, but triple the rewards too. 

To identify triple Japanese candlestick patterns, you need to look for specific formations that consist of three candlesticks in total.

They are often used to predict the next behaviour of currency prices, whether it is continuation or reversal patterns. 

But we’re getting ahead of ourselves.

Let’s take a look at the popular triple Japanese candlestick patterns.

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Evening and Morning Stars

The Morning Star and the Evening Star are triple candlestick patterns that usually occur when a particular trend is ending. 

They are both reversal patterns because they show the end of one trend and the start of another.

Let’s explore each one in more detail below.

Evening Star Candlestick Pattern

➡️ What is an Evening Star Candlestick Pattern?

The Evening Star pattern is a three-candle, bearish reversal candlestick pattern that appears at the top of an uptrend. It signals the slowing down of upward momentum before a bearish move lays the foundation for a new downtrend.

➡️ Characteristics of an Evening Star Candlestick Pattern.

The Evening Star occurs when the Japanese candlestick pattern is reversing from an uptrend to a downtrend as shown in the example below. The following occurs in this pattern:

• The first candlestick is bullish, indicating part of a recent trend.
• The body of the second candlestick is very small, showing indecision of investors in the market.
• The third candlestick confirms a reversal of the previous trend as it closes way below the first candlestick.

➡️ Chart Formation

➡️ Chart Formation on Forex Chart

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Morning Star Candlestick Pattern

➡️ What is a Morning Star Candlestick?

The Morning Star candlestick is a three-candle, bullish pattern that signals a reversal in the market. The morning star can be found at the end of a downtrend, signifying a potential turning point in a rising market. 

➡️ Characteristics of a Morning Star Candlestick?

The morning star occurs when the downward trend is reversed to an upward trend.  The following occurs in this pattern:

• The first Japanese candlestick is red and bearish, which is part of the recent downward trend.
• The second candlestick is small, showing push and pull between buyers and sellers.
• The third candlestick confirms that the buyers have won the tuck of war, and so the market is reversing to an upward trend.

➡️ Chart Formation

➡️ Chart Formation on Forex Chart

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Three White Soldiers and Black Crows

The three white soldiers and black crows are another type of three-candlestick pattern.

But rather than signaling a reversal, compared to many other patterns we’ve looked at, the white soldiers and black crows are used to confirm a trend.

Let’s explore each of them below. 

Three White Soldiers Candlestick Pattern

➡️ What is a Three White Soldiers pattern?

Three white soldiers is a bullish candlestick pattern that is used to predict the reversal of the current downtrend in a pricing chart. The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle’s real body and a close that exceeds the previous candle’s high.

➡️ Characteristics of a Three White Soldiers pattern

Three White Soldiers pattern is found at the end of a downtrend and indicates a shift in the balance from the sellers to the buyers. The following occurs in this pattern:

1. After a downtrend, there are three consecutive bullish candlesticks.
2. The bodies of the second and the third candlesticks should be of approximately the same size – if the third candlestick is visibly smaller than the preceding two candles, this means that the buyers are not completely in control and may indicate weakness among the buyers.
3. The candles have small or no upper wicks.

➡️ Chart Formation

➡️ Chart Formation on Forex Chart

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Black Crows Candlestick Pattern

➡️ What is a Black Crows pattern?

The Three Black Crows pattern is a bearish reversal pattern used to predict the reversal of the current uptrend in a pricing chart. It usually indicates weakness in an established uptrend and signifies the potential emergence of a downtrend.

➡️ Characteristics of a Black Crows pattern

The three crows pattern, also referred to as the “three black crows”, is a reversal pattern found at the end of an uptrend.  The following occurs in this pattern:

1. It consists of three consecutive bearish candlesticks.
2. The bodies of the second and the third candlestick should be approximately the same size – if the third candlestick is visibly smaller than the preceding two candles, this means that the sellers are not completely in control and may indicate weakness among the sellers.
3. They have small or no lower wicks.

➡️ Chart Formation

➡️ Chart Formation on Forex Chart

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Three Inside Up and Down

The three inside up and down candlestick patterns are the last type of triple candlestick patterns. Both, Three Inside Up and Down, signal the reversal of a trend. 

The three outside up and three outside down patterns are characterised by one candlestick immediately followed by two candlesticks of opposite shading.

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Three Inside Up Candlestick Pattern

➡️ What is a Three Inside Up pattern?

The three inside up is a bullish reversal pattern that occurs at the end of a bearish trend, signalling the beginning of a potential reversal.

It consists of three candles, with the first two candles forming an inside bar that’s followed by a bullish breakout.

➡️ Characteristics of a Three Inside Up pattern

The following occurs in this pattern:

1. The first candlestick is long and bearish, indicating that the market is still in a downtrend.
2. The second candlestick is bullish and should ideally close at the halfway mark of the first candlestick.
3. The third candlestick is also bullish and closes beyond the open of the first candlestick, ideally above the high of the second candle.

➡️ Chart Formation

➡️ Chart Formation on Forex Chart

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Three Inside Down Candlestick Pattern

➡️ What is a Three Inside Down pattern?

A three inside down is a bearish candlestick reversal pattern that forms at the end of an uptrend, signaling a shift in the direction of the trend.

The pattern consists of a positive candle that’s followed by an inside bar, after which the price breaks down below the open of the first candle. 

➡️ Characteristics of a Three Inside Down pattern

The following occurs in this pattern:

1. The first candlestick is long and bullish, indicating that the market is still in an uptrend.
2. The second candlestick is bearish and should ideally close at the halfway mark of the first candlestick.
3. The third candlestick is also bearish and closes beyond the open of the first candlestick, ideally below the low of the second candle.

➡️ Chart Formation

➡️ Chart Formation on Forex Chart

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And that’s all triple candlestick patterns covered!

Are you feeling confident in being able to spot them on Forex charts? Is there any specific one that stood out for you?

Let us know in the comments below!